Maker [MKR] is up 60% this week, but here’s why you should sell – Crypto News – Crypto News
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Maker [MKR] is up 60% this week, but here's why you should sell Maker [MKR] is up 60% this week, but here's why you should sell

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Maker [MKR] is up 60% this week, but here’s why you should sell – Crypto News

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Posted: February 24, 2025

  • Maker has a bearish swing structure on the weekly chart.
  • The swift rise in active addresses and network growth might not be enough to sustain the price bounce.

Maker [MKR] saw a 60% higher from the 16th of February, spurred by increased demand and a lower timeframe momentum shift.

On the 20th of February, a series of posts on X (formerly Twitter) from Whale Alert showed that $156.77 million worth of MKR was burned from an unknown wallet in eight transactions.

Maker SantimentMaker Santiment

Source: Santiment

Traders anticipated that this reduction in supply would increase the price of the token, but the burn did not initiate the momentum.

Data from Santiment showed that the rise in MKR prices over the past two weeks was accompanied by heightened daily active addresses and network growth.

These were bullish signals for the lending protocol, but the token was at a significant resistance zone. There were some reasons why a breakout past $1,750 could be halted over the coming days.

MKR traders might want to take profits

MKR 1-week ChartMKR 1-week Chart

Source: MKR/USDT on TradingView

The swing structure of Maker on the weekly timeframe was bearish. This was because the early February sell-off forced the price to make a lower low, beneath the $1k low made in October 2024.

Moreover, the price has surged to the $1,600 region (cyan).

Extending up to $1,730, this region outlined a resistance zone that the price has respected since February 2022. It was also retested as resistance as recently as December, before the price made fresh local lows.

Another reason to be bearish was the lack of reaction from the 78.6% Fibonacci retracement level in recent weeks.

Maker has fallen below this level twice in the past four months, which suggests that the downtrend could continue.

The CMF was at -0.04 but had been below -0.05 since August 2024, showing sustained capital outflows and sell pressure.

The MACD also showed that bearishness was prevalent, but was on the verge of showing a bullish crossover below the zero line.

Overall, the weekly chart highlighted an ample chance of a Maker reversal. A breakout beyond $1,800 and a retest as support over the next week or two can give swing traders some hope.

In that case, a move toward $2.4k could be on the cards.

Maker Liquidation HeatmapMaker Liquidation Heatmap

Source: Coinglass

The 3-month liquidation chart highlighted the cluster of liquidations just above $1.6k. They reached up to $1,755, coinciding well with the technical resistance zone already highlighted.

Hence, Maker traders might want to take profits as MKR approaches the key overhead resistance. They shouldn’t rush to enter short positions and can monitor the lower timeframes for signs of bullish weakness.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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